Objectives On completion of this tutorial, you will be able to:

• Identify the accounting treatment for customer obligations and problem credits
• Recognize the differences between individually-assessed and collectively-assessed provision methodologies, and the process for calculating both
• Differentiate between incurred and expected loss approaches

Tutorial Overview This tutorial covers the accounting treatment for problem credits, particularly those customers classified as nonperforming. It describes basic problem credit accounting requirements, key concepts such as days past due (DPD) and default, and the issues that arise when calculating provisions. It also provides detailed coverage of individually-assessed and collective provisions. Finally, the tutorial looks at the issues arising from the use of the incurred loss approach and provides details of the expected loss approach under IFRS 9. Prerequisite Knowledge Problem Credit Management - Late Stage Problem Credits Tutorial Level: Advanced Tutorial Duration: 75 minutes